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WorksheetsEFFECTS OF INCORPORATION AND LIFTING CORPORATE VEIL
Total questions: 20
Worksheet time: 13mins
Which of the following statements reflect the concept of separate legal entity;
the company cannot sue in its own name
the company cannot be sued in its own name
the company can hold land
the company is not liable for its own debts and obligation
The legal recognition given to the company is provided by section 16 Companies Act 2016.
TRUE
FALSE
Body corporate means that the company capable of exercising all functions of incorporated body.
TRUE
FALSE
As a body corporate, the company has an ability to sue and being sued.
TRUE
FALSE
A corporation is a body corporate.
TRUE
FALSE
The first recognition of body corporate is in the case of Salomom v Salomon & Co. Ltd.
TRUE
FALSE
The proper plaintiff rule was established in the case of Lee v Lee’s Air Farming Ltd.
TRUE
FALSE
Perpetual succession means that the life of the company is depended on the life of its shareholders.
TRUE
FALSE
The company life can be putted to an end by deregistration.
TRUE
FALSE
Syed and Sharipah are shareholders in S&S Corporation. Both held 50% of the company’s shares. They are also the company’s sole director. Later,both of them wish to sell their whole shares in the company to three new investors. What is the effect of this action to S&S Corporation.
S&S Corporation still exist
S&S Corporation will be dissolved
S&S Corporation have to appoint a new promoter
S&S Corporation have to change their constitution
Which of the following principles can best be derived from the case of Foss v Harbotle?
The company has the ‘power to hold land’
The company is liable for its own debts and obligation.
The company is still exist if all the members and controllers are die.
The members of the company cannot take an action on behalf of the company.
Which of the following statements is not a consequence as treating a company as a separate legal entity?
A company can sue and be sued.
A company is a perpetual succession.
A company’s debts and liabilities are on its members.
A company may own property distinct from the property of a member.
The above situation can show that as a company, Syarikat Spa Wangi Sdn Bhd is .........
able to own a property
not able to sell a property
able to conduct a business
not able to claim against insurance company
Incorporation of a company continues to exist until _______.
It is wound up
Any one of its members die
The declaration of dividends by its directors.
The office of the company is transferred to another place.
Which of the following statements is best referring to the ability of the company to own property?
the property of a company is in the company's name.
the property of the company is also belongs to the members
the property of the company belongs to its shareholders
the property of the company belongs to the creditors.
Choose the correct answer pertaining to a company as a body of having perpetual succession.
The death of a members usually bring the life of the company to the end.
The life of the company is not affected by the death of a member.
Transferring the shares by the shareholders, will affect the company's affairs.
The court will lift/penetrate the veil when the company is ....
used to evade legal duty
employed as an agent or alter ego of its controller
is a sham
conduct a business and obtained a legal profits.
The doctrine of "proper plaintiff rule" can be found in the case of .....
Foss v Harbotle [1843]
Salomon v Salomon Co Ltd [1896]
Macaura v Northern Assurance Co Ltd [1925]
Lee v. Lee's Air Farming [1961]
As regard to the above situation, Saleh set up a company for the purpose of ............
as a group of company
to avoid to transfer the house to Sulong
registering the constitution
obtained a capital through shares from the investors.
When a company is registered, it exist as a/an....
natural entity
artificial legal entity
professional entity
illegal entity
